If you find yourself in a financial bind and need money in a hurry, there may be a simple solution. If you own your car outright, you may be able to obtain a car title loan. These loans have been becoming more and more common in the recent past, largely because they provide a lot of benefits. Here are some of the advantages and disadvantages of car title loans.
Benefits
No Need For A Credit Check
You don’t have to worry about getting turned down for a title loan because of your credit score. With one of these loans, your car is used as collateral. As a result, most lenders don’t even bother running a credit check. In most cases, the only items that you need to take out one of these loans are a valid ID card and proof that you are the legal owner of the vehicle. As long as you can provide this information, you should be able to qualify for a vehicle title loan according to TNL car title loans. Because there is no credit check, these loans are a great choice for people who have bad credit since they provide an alternative to traditional loans.
You Can Get Your Money In A Hurry
The process of taking out a loan from a bank can often take multiple weeks to complete. Car title loans, on the other hand, can be completed much more quickly since they require less paperwork and don’t require a credit check. Oftentimes, you can have your money within as little as an hour. At the most, the process shouldn’t take more than several days to complete.
Flexibility
Most companies that provide title loans offer a lot of flexibility in terms of how you want to repay them. Typically, the term of the loan will be defined in the loan agreement. In many cases, however, you can extend the term so that you can have more time to pay. This type of flexibility usually isn’t available with traditional loans.
You Can Keep Using Your Vehicle
Getting a title loan is a lot different than pawning an item. Even though your vehicle is being used as collateral, you still get to keep it. The company that gives you the loan will hold onto the title rather than the vehicle itself. That means that you can keep using your car just like you would normally.
Drawbacks
Your Vehicle Could Get Repossessed
Although there aren’t a lot of downsides to title loans, there is one major one – if you fail to make your payments, your vehicle could get repossessed. If you default on your loan, the title company can take ownership of your vehicle and sell it to recoup the money that they loaned you. That is why it is so important to keep up with your payments if you decide to take out one of these loans.
